Cheapest Free Zones in UAE 2026: Setup Costs Compared

Why Free Zones Remain Popular in 2026

Free zones still let 100 percent foreign ownership and 0 percent corporate tax on qualifying income. For expats starting with a limited budget, the choice of zone directly affects first-year costs and renewal prices. The four lowest-cost options this year are IFZA, RAKEZ, Meydan, and Dubai South.

IFZA: Lowest Entry Package

International Free Zone Authority (IFZA) in Dubai offers a starter package at 12,500 AED that includes one visa and a flexi-desk for the first year. Adding a second visa costs 4,000 AED and each extra activity 3,000 AED. Renewal stays at the same rate, so total spend stays predictable. The process runs through an online portal with approval in three to five working days after document submission.

RAKEZ: Strong Value for Manufacturing

Ras Al Khaimah Economic Zone (RAKEZ) lists its basic trading license at 14,900 AED, which covers one visa and a warehouse option from 18,000 AED per year. Industrial activities cost an extra 5,000 AED but come with larger plots. RAKEZ also waives the first-year visa quota fee if you commit to three employees. Processing time averages seven working days through the RAKEZ portal.

Meydan Free Zone: Flexible Packages

Meydan Free Zone prices its economy package at 13,900 AED, including one visa and a shared office. Adding a second visa costs 3,500 AED. The zone allows 100 percent ownership across 1,500 permitted activities. Document attestation is handled in-house, cutting extra courier fees that appear in other zones.

Dubai South: Aviation and Logistics Focus

Dubai South charges 15,500 AED for its standard license with one visa and a virtual office. Companies in aviation or logistics benefit from direct airport access. Extra visas cost 4,200 AED each. The zone processes applications within four working days once all attested documents reach the authority.

Direct Cost Comparison Table

License fee: IFZA 12,500 AED, Meydan 13,900 AED, RAKEZ 14,900 AED, Dubai South 15,500 AED. Visa fees beyond the first: IFZA 4,000 AED, Meydan 3,500 AED, RAKEZ 4,500 AED, Dubai South 4,200 AED. All four zones require a medical test (around 800 AED) and Emirates ID (400 AED) per person.

Next Steps for Expats

Choose the zone that matches your activity and expected headcount. Prepare passport copies, photos, and a business plan before submitting online. Once the license is issued, open a corporate bank account within 30 days to stay compliant.

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Tovi knows current 2026 UAE rules, fees, and processes. Ask anything. Ask Tovi free →

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Tovi knows current 2026 UAE rules, fees, and processes. Ask anything — visas, banking, housing, schools. Ask Tovi free →